Meaning of Shares :

Share as defined in Section 2(84) of the Companies Act, 2013 means a share in the share capital of a company and it also includes stock. A share is one unit into which the total share capital is divided. It is a fractional part of the share capital and forms the basis of ownership in the company. For example, when a company has a share capital of Rs.5,00,000 divided into 50,000 shares of Rs.10 each and a person who has taken 50 shares of that company is said to have a share in the share capital of the company to the tune of Rs.500. In other words, shares are divisions of the share capital of a company.